Friday, January 25, 2008

NEW YORK: Citigroup Inc awarded Chief Executive Vikram Pandit $26.7 million of shares and 3 million stock options, six weeks after he took over the largest US bank, and a week after reporting a record $9.83 billion quarterly loss. In a Thursday evening filing with the US Securities and Exchange Commission, Citigroup said Pandit was awarded 1,094,949 shares on Tuesday under a company incentive plan adopted in 1999. Citigroup said Pandit also received options to buy 1 million shares at $24.40 each, 1 million at $30.50 each and 1 million at $36.60 each. Each of these awards vests in four annual installments. The higher exercise prices carry respective 25 per cent and 50 per cent premiums over Citigroup's Tuesday closing price. The stock award constitutes Pandit's first direct stake in Citigroup shares, the filing shows.Citigroup acquired his Old Lane Partners LP hedge fund firm last year for about $800 million.Pandit became chief executive after predecessor Charles Prince resigned under pressure on November 4 as losses mounted from soured loans and complex securities known as collateralized debt obligations.Citigroup is one of more than 90 US companies expected at their annual meetings this year to face resolutions seeking a greater say for shareholders on pay for top executives.The bank's shareholders rejected a proposal to give them an advisory vote on executive pay at Citigroup's annual meeting last April.Citigroup also awarded stock, options or both to more than two dozen other senior executives and directors, other SEC filings on Thursday show. Sir Win Bischoff, who became Citigroup's chairman last month, acquired a net 179,519 shares, worth about $4.4 million under the 1999 incentive plan.This increased his stake in Citigroup to 423,542 shares. Gary Crittenden, who became chief financial officer in March, acquired 377,579 shares worth about $9.2 million, boosting his stake to 655,153 shares.Sallie Krawcheck, the wealth management chief, acquired a net 320,087 shares worth about $7.8 million, raising her stake to 584,028 shares. Bischoff's and Krawcheck's awards reflect the withholding of some shares to cover tax payments, Citigroup said.